Elon Musk trolls those who call crypto a scam as two major banks crash

Read U.TODAY on

Google News

Tech mogul Elon Musk, who is known for his longtime support of cryptocurrencies, particularly the meme coin DOGE, has taken to Twitter to troll haters who often call cryptocurrencies a scam and advise taxpayers to keep their money in banks. Often enough, these people are well-known in financial circles, host popular podcasts and appear as guests on CNBC programs.

The thing here is that two big banks, who happen to be friendly to cryptocurrencies, have run into big trouble. One is closing at a loss and the other is in negotiations to sell itself to financial institutions – Silvergate bank and Silicon Valley Bank.

After Elon Musk’s tweet, Dogecoin demonstrated a small growth of less than 0.5%.

Elon Musk pokes fun at crypto haters as two banks fall

The meme that Musk tweeted shows that a person sweating in a fit of doubt has to choose between pressing one of two buttons. The caption under one button says “crypto is a scam, keep money in banks.” The caption below the second one tells you that “banks are a scam, keep money in crypto.”

As reported by U.Today earlier, Silvergate bank, which has been offering its services to crypto startups and exchanges since 2013, which includes the bankrupt FTX exchange, has recently stated that it is shutting down its operations due to recent developments in the crypto space and regulatory actions. The bank was run by Silvergate Capital, which announced it was closing its banking division after selling its assets at a loss. This was necessary to compensate for the 8 billion dollars that were withdrawn by customers abruptly when the crypto market started to fall.

The other major crypto-friendly bank now reportedly intending to close is Silicon Valley Bank. As covered by U.Today, the parent company SVB Financial is now in talks to sell the bank, as customers have started actively withdrawing their money and shares in the bank are plummeting.

Bitcoin Grows Despite Possible SVB Sale

Last Friday, March 3, the flagship cryptocurrency Bitcoin fell by about 6%, losing the $24,000 level and falling to the $22,000 zone within an hour. The price drop was caused by the crypto space’s reaction to the news that Silvergate’s crypto-friendly bank was shutting down.

At the beginning of the week, several other negative factors, including the aforementioned Silvergate story, pushed Bitcoin below the $20,000 level, where it was last seen back in January.

Now, Bitcoin has started to demonstrate a revival and is trading at $20,616, showing a growth of 3.5% in the last 24 hours. It appears unfazed by news of another major crypto-friendly bank seeing its shares plummet and in talks to sell itself.

The crypto market has given a positive reaction to the significant growth in the Non-Farm Payroll index which went up 311,000 in February – well above what analysts had expected.